Property Auctions

[HighBidder]

Auctions seem to take on a flavor and bring results depending on the local market. I have worked with an outfit over the last 4 years that has done constant aucions in the Destin and Sandestin market and has sold properties seemingly at market value. I believe the sellers and buyers were savvy and got the deals done in a timely and efficient manner. A lot depends on the marketing beforehand and the database of buyers/investors the auction company has.

In a dire market the results are likely to be much different than a hot, or a normal market.

Kurt,

You betcha, but the numbers are still real.

 

[Kurt]

Kurt,

You betcha, but the numbers are still real.

What numbers?

 

[HighBidder]

When properties at an auction have a "reserve" I dont think you get true buyers making bids. You get people who feel safe bidding on that 2M property for 1M . They will never hit the reserve, it is wishful thinking. Even though it would be a good deal those bidders think twice before bidding 1.7 or 1.8 million because they know they might hit the reserve and actually have to buy it. If I were really looking to purchase a 2M lot I would definitely take a shot at an auction and bid up to 80% or 85% of its value. (net of the buyers premium)

IMHO, an absolut auction, particularly if there are ready and able bidders present would definitely drive the price close to what its true markey value is, sometimes higher if a frenzy is started.

Amen & Shalom.

(It's late, I'm tired, and getting froggy, but that's okay. You guys have a good understanding od what's happening out there.

 

[HighBidder]

Strong buyers only if it is an absolute auction.

Joe,

Typically stronger when absolute, but properly motivated sellers is really what makes an auction.

 

[HighBidder]

So, were you able to provide the most significant benefit to the people trying to sell their property? Why have we not heard of any sales? Did anything sell? Have I answered my own questions?

Hi Joe,

Though many bids were well, well above purchase price, none were accepted. We are still working to get a couple of the deals done.

IMO, the sellers still do not realize the severity of the market conditions in SoWal, or they do not NEED to sell.

I assure you that you'll see very motivated sellers for out next auction in your area.

 

[HighBidder]

What numbers?

The numbers acheived at auction. We brought the most money available under that set of terms & conditions.

 

[HighBidder]

Going to bed, Gang. I'll check back in over the weekend.

Thanks,

S....

 

[HighBidder]

BTW, I understand that no one ever wants to back up. The only people that really suffer in this situation are the individuals who purchased at the peak of the bubble.

Everyone else will either be required to hold, or to adjust their anticipated profit. Neither one of those choices is the end of the world.

S...


Been dying to use that "bang". That's hilarious!

 

[Smiling JOe]

The numbers acheived at auction. We brought the most money available under that set of terms & conditions.

money not accepted is money not brought to the table. I think it is misleading to say that you brought the most money available, when in reality, you brought none.

 

[SHELLY]

Geez...Highbidder, you got through all those posts and no one cued the "Grim Reaper," and you even used the "B" word!

I imagine you'll be humping butt once the condo auctions in Panama City Beach, Destin and other places start to heat up.